Memecoins Resurgence Drives Up Ethereum Gas Fees to 12-Month High

11:23 am, Tue, 9 May 23

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Memecoins, created as a joke or a parody of established cryptocurrencies, have gained significant popularity in recent years due to social media and online communities. The well-known meme coin Dogecoin, which was created in 2013 and based on the Shiba Inu dog meme, saw its value soar over 6,000% in 2021 and briefly surpassed the market capitalization of some of the world’s largest companies. Other popular memecoins include Shiba Inu and SafeMoon.

Memecoins are unique due to their strong community backing, low transaction fees, and ease of trading on decentralized exchanges. However, they are also highly volatile, with their value rapidly rising and falling based on social media hype. Investing in memecoins can be high-risk, high-reward, and it is crucial to research and understand the risks involved.

Overall, while some investors have made significant profits from meme coins like Dogecoin, others have lost money due to market volatility. 

Also, the median gas fee on the Ethereum network has hit a 12-month high, coinciding with the resurgence of meme coins such as Pepe, Farb, King and so on. Gas fees are paid by users to execute transactions on the Ethereum network, and the increased demand for transactions has caused the fees to skyrocket. The surge in memecoin popularity has also led to increased trading volume on decentralized exchanges, further contributing to the higher gas fees.

The high gas fees on Ethereum have prompted some users to seek alternative blockchain networks with lower transaction fees. This has led to increased interest in other networks such as Arbitrum and Solana, which offer lower fees and faster transaction times. However, Ethereum still remains the most widely used blockchain network for decentralized applications and smart contracts.